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How much must employers and employees contribute into their pension scheme under the pensions auto-enrolment provisions?

The contribution rate for qualifying schemes that are occupational defined-contribution pension schemes or personal pension schemes is being phased in between 1 October 2012 and 6 April 2019. Broadly speaking, the total minimum contribution required from 6 April 2019 will be 8% of a specified band of earnings, comprising an employer contribution (3%), an employee contribution (4%) and tax relief (1%). Employers can contribute in excess of the 3% minimum if they choose to do so.

There is a transitional period for contribution rates leading up to 6 April 2019. For employers, this will be a contribution rate of 1% to 5 April 2018, and 2% between 6 April 2018 and 5 April 2019.

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